General Market commentary

A bloody red day to start 2021. We have been pounding the table on the elevated for weeks. Alertive readers raised cash and avoided this rug pull. Congratulations! Active investors should wait for the market to calm down then get aggressive progressively. This is NOT a time to put full risk on. A proliferation of pump and dump on leading stocks is a sign of institutional liquidation.

Quantative market model signal

Midterm trend: moderately bearish (downgraded from moderately bullish)
Midterm risk: high (we have been alerted this risk for weeks!!!)

Featured charts

This RRG chart shows the relative strength of different sectors. The strength of financials(XLF) is simply mind-boggling. It is possibly driven by this catalyst: The Fed Says Banks Can Buy Back Stock Again. Although CL Capital as a growth investor doesn’t like financials too much, it is very important to keep in mind you have to bend with the market. Personal opinions are meaningless. In the end it’s the price dicates. Remember, stocks are only good when they go up!

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